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Arunachal transfers 11 Gw stalled hydropower projects to Central PSUs - Best Business Review Site 2024

Arunachal transfers 11 Gw stalled hydropower projects to Central PSUs

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Stalled hydropower projects in the state of Arunachal Pradesh which have seen no progress in the last two decades could finally see the light of the day as the state government transfers them to central public sector utilities. These 12 hydro projects totalling 11 Gigawatt (Gw) were awarded to a variety of private companies, at least 15 years ago but none saw any progress.


In a public statement, the Ministry of Power said, “The Government of India and the Government of Arunachal Pradesh have come together to rejuvenate and execute 12 stalled hydroelectric power projects in the state.” 


The state government signed Memorandums of Agreement with three central PSUs – NHPC Ltd, SJVN Ltd and NEEPCO, which is now a subsidiary of India’s largest power generator NTPC ltd.


Union Minister for Power and New & Renewable Energy R K Singh said in the statement, “The per capita income of the state would become more than that of Maharashtra and Gujarat. All the developed nations including the USA, Canada, Norway etc., have harnessed 80-90 per cent of their hydropower potential. In India also, the states which harnessed the potential of hydropower have become prosperous. Hydropower is a green source of energy. Its usage will also increase the groundwater level and promote the growth of flora & fauna.”


Out of these 12 projects, five projects of 2.6 Gw have been allocated to NEEPCO, five projects of 5 Gw to SJVN and the remaining two projects of capacity 3.8 Gw to NHPC. NHPC already has two mega hydro projects in the state – 2 Gw Subansiri loLowernd 2.88 Gw Dibang.


In 2003, the then NDA government had announced to set up close to 50 Gw hydropower capacity in the country, of which Arunachal was to build 25-30 Gw. The state government however went on a MoU signing spree with private companies for building hydro projects. By 2009, the state had 153 MoUs, totalling 43 Gw. Some of the projects slated to be built by NHPC were also diverted by the state government to private companies.


CAG which investigated these MoUs criticised the move by the state government. Several companies which signed MoU with the state never came back to construct the project, after raising money in the name of the said MoU. In each of these MoUs, the state government had a 26 per cent stake but lacked the finances to contribute.


Lack of state finances, lengthy clearance process, local protests and environmental concerns stalled the plans of genuine players as well.

The ministry of power in its recent statement said the development of these projects will contribute towards achieving the declared Nationally Determined Contribution (NDC) target of 500 GW of non-fossil energy capacity of India by 2030. “Hydro Power will also be an effective contributor to the objective of achieving Net Zero carbon emissions by the year 2070,” it said.


Power plant

Capacity

Allotted PSU

 

In Gw

 

Tato I

0.1

NEEPCO

Tato II

0.7

NEEPCO

Heo

0.2

NEEPCO

Naying

1

NEEPCO

Hirong

0.5

NEEPCO

Etalin

3

SJVN

Attunli

0.6

SJVN

Emini

0.5

SJVN

Amulin

0.4

SJVN

Mihumdon

0.4

SJVN

Subansari Upper

2

NHPC

Subansari Middle

1.8

NHPC

 

 

 

Total

11.2


Source: Ministry of Power

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